The end of year holidays are always something to look forward to as individuals are afforded some much-deserved time to kick back and relax with their families. However, the holiday season is also undeniably a double-edged sword, and not only because of the time you’re forced to spend with in-laws!
For most members of the human species, the end of year holiday often represents a financial black hole as strict budgets and all sense of frugality fly out the window in exchange for gifting, bubbly champagne and tender turkey. If this holiday overspend rings a bell – fear not, as bouncing back from a holiday indulgence is in fact very possible through the implementation of some key steps!!
Break Down What Went Wrong
It’s important to analyse what exactly went wrong over the festive period with regards to your financials. Identify whether the root causes of the excessive spending were seasonal once off occurrences such as presents for friends and family over the festive period, or whether you have committed to expenses of a more permanent nature. If the latter is the case, it may be time for a financial intervention.
Try to get rid of these permanent expenses eating into your cash flow by rather taking the money previously allotted to them and instead putting it towards a monthly investment or saving plan.
New Year – New You
Nothing provides the incentive to save quite like the threat of financial ruin. Use the expensive holiday period as motivation to make real changes to your lifestyle. There is no doubt that society today is geared towards making individuals spend more, often on goods that people neither want or need. Don’t allow yourself to be exploited by the system, try to cut out all luxury expenses and strive to live a fulfilling frugal life!
A key aspect of bouncing back from a period of excess spending is to realise that, no matter how enjoyable throwing around money is, it is simply unsustainable in the long run. Once this epiphany has been reached, it’s time to budget!
Your New Year budget needs to be realistic above all else, which may necessitate slashing your spending in the early months of the new year in order to counteract the previous holiday overspend. It’s no exaggeration to say that a well thought out budget really is the only way to guarantee that you live within your means. Planning a budget is not difficult, having the willpower to stick to it? A very different story.
Where to Start
Northwood offers insightful financial planning which will have your excessive holiday spending curbed in no time. Planning a well thought out budget to best suit your needs as an individual is one of the key services Northwood offers and it can ultimately represent an integral step towards your future financial wellbeing. After cutting down on your expenses, Northwood can also guide you towards the best investments to grow your net worth, as well as providing methods with which you can increase your cash flow.
Like food indulgence, holiday overspend is a near universal problem and can set the tone for the rest of the year if not treated properly. However, although the remedy steps look fairly clear, they can be difficult to carry out on your own due to both willpower issues and a lack of technical expertise. Due to this, it may be better to seek the help of willing and capable professionals, a dietician to curb the eating and a Financial Planner to set you on the right path financially.